Quote:
Originally Posted by Enoch Root
Yes, we can all see the price increases that are all around us, but that isn't the point. GGG is talking about ongoing inflation - it can become habitual, and then everyone keeps raising prices simply because prices keep going up. That is the situation that needs to be avoided.
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For inelastic goods, sure, but for elastic goods we already see people putting off purchases. Demand will eventually fall with enough inflation.